Cuomo announces low-cost hydropower to help WNY companies create more than 80 new jobs

by jmaloni

Submitted

Fri, Aug 1st 2014 07:00 pm

Gov. Andrew M. Cuomo has
announced the New York Power Authority board of trustees approved new allocations
of low-cost hydropower to three firms in Western New York. The governor also
announced Western New York Power Proceeds Awards for two other firms in the
region. Together, the hydropower allocations and funding awards support the
creation of more than 80 jobs and more than $50 million in capital investments.

"Access to clean,
low-cost hydropower continues to be an important asset for Western New York,
and today we are tapping into that potential to grow the regional economy and
create jobs for New Yorkers," Cuomo said. "These allocations are a tremendous
form of support for businesses that are looking to expand or relocate from
out-of-state. I am proud that we are helping these companies thrive in Western
New York, and I look forward to their continued success in the region."

The NYPA trustees
approved hydropower allocations to three Erie County firms: 3M Co. in
Tonawanda, Innomotive Solutions Group in Lancaster, and Royal Plastix USA in Buffalo.
In addition, the trustees approved funding under the Western New York Power
Proceeds initiative to Praxair, in Tonawanda, and the Niagara Falls
International Airport Stakeholders Group.

Royal Plastix USA is a subsidiary of Royal Sponge Manufacturing,
which operates a plastic injection molding business in Canada. The firm will
receive a 600-kilowatts allocation to facilitate the construction of new
manufacturing operations in a currently vacant facility in Buffalo, creating 55
new jobs and capital investments of more than $3.7 million.

Innomotive Solutions Group designs, manufacturers and paints
roll-up, shutter-style doors for fire apparatus, emergency vehicles and other
specialty vehicles. The firm is looking to renovate a facility in Lancaster so
that it can expand from Canada. The 100 kW-allocation will help facilitate the
$5.5 million expansion that will support the creation of 21 jobs, which were
announced earlier this year in a previous round of NYPA funding from the power
proceeds program.

3M Co., a manufacturer of more than 55,000 products, including
adhesives, abrasives, electronic materials, car-care products, household
cleaning products, and optical films, will receive 150 kW of hydropower in
exchange for a commitment to create six new jobs as part of a nearly $2 million
expansion project at its Tonawanda facility. Construction is scheduled to begin
later this summer.

NYPA Chairman John R.
Koelmel said, "As a lifelong resident of Western New York, I cannot overstate
how much it pleases me to see these impactful hydropower allocations and
funding awards. These awards represent opportunities that enable local
businesses to expedite their expansion plans, creating new jobs and solidifying
their presence in the region."

Gil C. Quiniones, NYPA
president and CEO, said, "Providing competitively priced hydropower to
enterprises in Western New York is an impactful economic development tool. And
the funding awards are another means beyond NYPA's low-cost power to assist
firms in the region, spurring business expansion in Western New York."

Low-cost Niagara
hydropower is currently priced at more than 50 percent less than wholesale
market electricity in the Buffalo-Niagara region. It is linked to tens of
thousands of existing jobs.

In addition to new
permanent jobs, the capital investments by the companies receiving the latest
power awards are expected to support dozens of construction jobs.

The NYPA trustees
approved a $500,000 proceeds award to Praxair
for its Tonawanda expansion project. Western New York Proceeds awards, for
economic development in the region, are made possible from net earnings
obtained from the market sale of unutilized Niagara hydropower and stem from
legislation signed into law in 2012 by Cuomo. Recommended awards are made by
the Western New York power proceeds allocation board.

The Praxair facility,
with a workforce of more than 1,300, is responsible for the company's global
plant engineering, research and development, North American operations
communications and global plant monitoring. The nearly $39 million upgrade will
enable Praxair to pursue technological advancement and increase its workforce
by 22 jobs.

Empire State
Development, the state's economic development agency, will provide up to $8
million in performance-based Excelsior Jobs Program tax credits and a $2
million capital grant, both of which are tied directly to the company's job
creation and investment commitments.

ESD President, CEO and
Commissioner Kenneth Adams said, "ESD has partnered with Praxair to offer an
incentive package that will help it expand and modernize its technical, research
and development functions in New York state. Praxair's expansion ensures a
long-term commitment to the region and to the more than a thousand employees in
the Western New York community who work at the facility."

NFIA Stakeholders Group, the other proceeds awardee approved on Tuesday, is a not-for-profit enterprise consisting of area
government entities and businesses that share an interest in the expansion of
air services in Niagara Falls, as well as the long-term economic success of the
region.

With the help of the
NYPA Proceeds Award, NFIA will perform a study of the existing fiber-optic
infrastructure that feeds into the Niagara Falls Air Reserve Station, the
Niagara Falls International Airport, the former Army Reserve Center site, the
Niagara Airport Commercial Park, the Wheatfield Business Park and the Calspan
site in Buffalo.

The $125,000 award will
provide one-half of the financing needed to successfully perform the study.

Including the latest
awards, 24 enterprises have received funding for a total of more than $14
million since the initial round in 2013. Through the end of June, NYPA has made
deposits of nearly $38 million into the Western New York Economic Development
Fund.

Congressman Brian
Higgins said, "Proximity to low-cost hydropower gives Western New York a
competitive edge, providing local businesses with more room for growth and
economic returns for the greater community. With the allocation of power and
power proceeds, we take what is naturally ours and reinvest it in projects that
benefit the people of Western New York."